desensitized. you see this guy here. that's still a black bear. and then even more confusing is the attack, the recent attack was a grizzly bear. the grizzly bear is technically called a brown bear. >> thank you. speaking boehner balks as a big deal, but tonight's white house meeting is still on. today, the debt deal in pairil. and then the economy in 2012 with presidential candidate,

rick santorum. i am candy crowley, and this is "state of the union." hoped for a grand debt deal got buried last night in a blizzard of status quo rhetoric. the white house will not pursue a bigger debt reduction agreement without tax hikes. i think the best approach may be in producing a smaller measure. and dan pfeiffer responded, we cannot ask the middle class and seniors to bear all the costs and budget cuts. joining me now, house republican whip, kevin mccarthy of california. if i am out there listening to all of this, i want to stan gul awful you. why can you not get this deal? it looks like a bargaining ploy?

>> i don't think so. you would not increase taxes on the small business, which is what the president wants to do. you had an negotiation with cantor and kyl and biden. so what he's saying, let's go there, there's no taxes, and there are cuts right there, but why don't you also get a balanced budget. >> you could also being looking at trying to help with medicare, and the republicans say they want to do. take a look at medicaid and look at social security in exchange, it seems to me what has occurred or what has reported to have occurred is speaker boehner went along with the idea that you would end the tax cuts for the wealthy u.s.iest among us, and n

overhaul with tax reform and what is wrong with that? >> a lot of things are wrong with it. who are you going to tax for small business -- >> these are individual tax rates. yes, some businesses, but only a small portion file under individual tax rates? >> look at the data. if you look at the data from 2001 to 2007, companies with 500 employees or less added 7 million jobs, and all the job growth starts with small business. >> how many of those file individually? >> the majority. look at the data. if you look at the data that you have, small business creates the job. you go 200,000 over, and they put the money back in. job growth in america today, startups is lower than in 17 years from the policies of this

president and administration. he spent more than a trillion, and it costs 278,000 for every single job. >> the stimulus plan was about 800 billion -- >> no, with interest, it was 1.1. >> the problem, if we step back away from the numbers, which you know get disputed a lot, and we have to say we're talking about individual tax rates and not small business rates? >> what does a small business person do? they take their money and get taxed upon it and get reinvested in. you are going to punish them. look from the standpoint of startups. the lowest in 17 years. because of the uncertainty out there. why would they raise the taxes now -- >> let's put it that way. i think when you're looking at this, it looks as though -- as least we are led to believe i

will put in entitlements and medicare, and you all have said no to anything on the revenue side, sort of consistently. what are you willing to do that will get these things back on track? >> well, you want to know what we're willing to do. we're willing to set out a framework that puts america back on the track where it has tax reform and has reform process. we can reduce the budget in four months. you go back to 2009. they never produced a budget. we laid out a reform to social security and medicare to save them. the president has not. so from the premise that where republicans have been in the short time they have been in the majority, we laid out a frame. energy reform. we passed nine bills that would create more than half a million jobs that have been lingering in the senate. i don't think the premise of where we have been has always been out in front. there are no votes on the

republican side -- >> so the speaker could not, even if he wanted to and we're led to believe that he was willing, the speaker cannot let go of, for instance, the bush tax hikes for the wealthy because you don't have the votes -- >> speaker pelosi did not have the votes when they were in the majority, and why didn't they raise them then? it's bad policy. especially in a down economy. >> so i guess the problem remains regardless of what has happened in the past 18 months, the problem remains, july 10th, and now you have until august 3rd, and there doesn't seem to be middle ground here. hour are you willing to walk from your current position so you can pass something? >> when we laid out from the beginning this is not a revenue problem, it's a spending problem.

sending has gone up 73% in the last three years. economists will tell you if you raise taxes on small businesses, which are not growing right now you harm the economy more. >> so you have laid out what you will agree to and that's it? >> no, the answer is, we have sat in the room with the vice president and the democratic leaders and they agreed to $2.4 trillion in cuts. the speaker laid out at the beginning of the goebation, if you want to raise the debt ceiling you have to cut as much as you are willing to raise at least. we have a format. what about long term? if we are serious about doing something long term, why don't we pass the balanced budget amendment. we had the opportunity to actually do something right for this country. >> you also have the opportunity, a golden opportunity, perhaps, to look at medicare, which you all have said will bankrupt the country

and look at social security, and you will pass that up at this point? >> we're not passing it up. we put it in our budget. >> you will pass it up in these negotiations because the speaker said we will not do the big deal we have to do a smaller deal. by the way, you all -- cantor walked out of the biden talks saying that they were insisting on tax cuts. i am not altogether certain that that's a done deal, is it? >> the democrats know nothing else than wanting to spend more. this has failed the last two years. this view that government spend something going to get the economy back on track, we've gone through it. churchill said he could count on americans doing something right after they exhausted all the other options. i think this president and his administration needs to change course and grow the that i hapr

sector. if we cut spending and given enhancemen enhancements, it creates more revenue. >> the first question is you -- republicans only run one house in congress. >> yes. but we take all the blame. >> you take all the blame. but the thing is, there just seems to me there has to be some willingness to give, and i have not heard anything from you, yeah, if we could get a deal that would cut 2.5 trillion in savings, i would agree to this on the revenue side. there's nothing on the revenue side you will agree to. >> candy, i never found a tax increase that created a job. i watched our economy sputter downward. out across the american public, they want to go back to work. in policy, that will fail so i

don't want to go back there. i don't know any american household that has increased spending 73% in the last three years. i'm tired of the gimmicks and the budgeting tricks. this has to be an honest approach. we're at a threshold. we're not losing jobs because our credit card didn't have a higher limit. we have sat in the room honestly with the democrats and moved forward with them all the way but they keep saying one thing, they want to raise more taxes. >> and you keep saying no. i have to leave it there. >> even when they were the majority, they said no. >> thank you. you have your work cut out for you. up next, chris value hallen on what his democrats want from a debt deal. ♪

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have a joining me now, the top house the budget committee. the speaker of the house says i don't think i can do this deal and let's go back to the biden talks. you were in the biden talks, and they say that was $2 trillion in

savings, and let's do that. is that a done deal? >> not a done deal at all. the vice president said we identified a trillion in savings. we're nowhere close to 2.4 trillion. to go back to that process, i think it's setting the motion all over again. >> we had at least ten sessions. and even that trillion was contingent on an overall agreement which meant the republicans had to agree to some revenue component. at the end of the day, what we're seeing is the priority of the republican colleagues is not to get a deficit reduction deal, it's to protect special interest tax breaks for big corporations. we had the corporate jet loophole and the big oil and gas companies, and then the folks at the top of the income ladder. and i listened to my friend kevin say they were all small businesses, and as you pointed out, it's not true. 3% of businesses fall in the top

category that we're talking about, and those businesses include things -- companies like kkr, price waterhouse, fortune 100 companies, and anybody that files as an s corporation, and those are good businesses and not mom and pops. >> they are the businesses, those 3% are the ones that create the most jobs. but carry on. >> what we're talking about here are big businesses. we're talking about any business that files as an s corporation. we're talking about lobbying firms, and things like pricewaterhouse. good companies, but to say that you're protecting small businesses and mom and pops is dead wrong, and i think we should put an end to the myth, what they're protecting is gas companies and corporate jets. >> their argument is, look, we -- a lot of republicans say, fine, we think some of these

loopholes ought to go but in order to do that we have to have tax reform which we can't get between now and august 2nd. if they would agree to that in exchange for some sort of deal that would say we have to have tax reform by date certain, would you go for that? >> we're all for tax reform. we think we should bring down the corporate rate and expand -- >> it's part of the price of getting them to agree to something. >> yeah, and part of that could go to debt reduction. but not one penny of closing tax loopholes can go to reduction. every penny has to go to reducing the rate. >> do you want to raise taxes? you know what a lousy jobs report we just got. do you think it's a good idea to raise taxes on anybody when the jobless rate is 9.2%? >> all the proposals we're talking about would kick in after 2012, number one. number two, yes, i think it's a good idea to close corporate tax loopholes because we have to

reduce our deficit to insure long-term economic growth. >> what happens if no jobs are being produced? >> well, we're not proposing that these changes go into effect immediately. we're talking about phased in over a ten-year period. and when you add higher tax rates for the folks at the top, we had a booming economy and 20 million jobs were created, and the rub is this, the most important factor for economic growth are not small changes in the top tax rate. there are many other factors in the economy. no, we would not put these changes in place right away. but you have to reduce the deficit. >> well, what if in 2012 the unemployment rate is still high, would you still want to do it? >> i would close the loopholes for corporate jets sooner rather than later. but in terms of the overall approach, we should look at the spending side of the equation.

the talks should be do no harm to the economy. what is worry some, the republicans are saying if you don't give us deficit reduction our way, end the medicare guarantee and slash medicaid benefits and protect -- >> that's not in the biden -- >> no, but that's in their budget. in terms of the debt reduction package, they're not asking for that? >> they have never taken that off the table. that's their position. you just heard it from kevin again. that's their approach to this program. we said we're not ending the medicare guarantee and are willing to have a balanced approach, in terms of the framework, not every detail. has to be the way we go forward. it's very disappointing that we may lose this opportunity to do something significant on deficit reduction because of this priority of protecting special interest tax breaks. >> if you have to, will you go to the medium deal, as they say,

the biden talks. if you do, if you can find 2 trillion in tax cuts, will you pass that without anything on the revenue side in order to meet that august 2nd deadline? do you have to have something on the revenue side? >> we made it clear as part of the biden discussions that you have to have a balanced approach to this. and that means ending -- we don't think the oil and gas companies should be getting big subsidies while we're making deep cuts in parts of the budget. the republican budget says end the medicare guarantee and their budget would provide a 30% tax rate for the guys at the top. >> and back to the debt deal, you all -- meaning democrats, you think, would allow the august 2nd deadline to pass without a deal if it meant that

you had to do only budget cuts? >> let me be clear. we never said we will hold the united states full faith and credit hostage in the discussions. the president said that's a priority. if you don't lift the debt ceiling, every economists out there said the economy will tank. what is really appalling is to see our republican colleagues essentially providing a form of extorti extortion, if you don't agree to deficit reduction the way we want it, we'll put all the jobs at risk, because we will allow the united states to default on its debt. that's irreresponsible -- >> you won't let that happen? in other words, you would pass just cuts, just spending cuts in order to get a deficit -- >> no, no, that's not what i am saying. what i am saying is we want to do deficit reduction but we recognize we have a responsibility to prevent the economy from tanking.

>> meaning raise the debt ceiling? >> i would prefer to reach an agreement, but unlike our republican colleagues we're not saying if we don't get the talks in our way -- >> but that won't pass the house as far as we can tell. >> that's because that's they're position. we're not the party saying we'll put the economy at risk not paying the bills if you don't do deficit reduction our way. we're not taking that position. and there way is slashing medicare and medicaid to protect corporate tax breaks. >> not on the debt talks. how is this going to end? >> well, we'll have to find out tonight whether the republicans will reconsider their position. this is a huge missed opportunity for the country to get a significant deficit reduction package in a balanced way. and if they refuse to do that, then we're really back -- not at

square one, but we're really -- it's a major setback. while we made progress in the biden talks, our republican colleagues are -- they're dreaming if they think we had $2.4 trillion in cuts. we were nowhere close to that. again, they walked out because they did not want to take away the tax breaks for the purpose of deficit reduction and folks at the very top. >> but you are willing to go back to the biden talks if that is where it goes? >> we're not take the position we will allow the economy to go down the tank and put jobs at risk if we don't get it our way. up next, republican presidential candidate, rick santorum, tells us how important social issues will be this cycle, and his new pledge on marriage. >> when i first read it i was taken back and cannot argue that

i wasn't.

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joining me now, republican presidential candidate, rick santorum, former senator from pennsylvania. >> thank you for having me, candy. >> if you were the president of the united states right now dealing with the debt issue, what concession would you make with the democrats to entice them into a package with major spending cuts? >> i would be making the case is that not being made right now by this president, that we're in a severe crisis, and it's a crisis of spending. when you see spending at almost 50% more than what it normally is since the second world war, and you see taxes down slightly because we're not creating jobs and the economy is slowing, so the problem is not a tax problem but a spending problem. i would say that it's -- that the place where most people

would be if we had a leader who was out telling the american public the truth as to what the nature of the problem is, we could get democrats to go along with bigger spending cuts than they are now. we have a president in denial, in denial that we have entitlements out of control and government has grown too big. >> he has been saying or at least intimating that yes, we can look at medicare and social security, but the fact is he has bring his democrats with him. when you look at what they are asking, they are asking for something on the revenue side. what would you do? is there anything you would give up? while the polls show a number of things, they also show they want washington to work. >> yeah. >> and the only way washington works, you know, you have been in the senate, is compromise. where would you compromise with democrats? >> my sense is i would be willing to do less spending cuts

now in exchange for a balanced budget amendment in the future. i think that's really what we need is a backstop. and that's what i hope republicans will stand firm on. you know, candy, you have been around long enough to know that nothing gets done in washington unless there's a crisis or their backs are to the wall. no bill passes in the central until friday on the weekend when everybody wants to go home. you have to have the wall. we need a wall in washington, d.c. we need to have democrats and republicans have the wall in place, seven or eight years down the line, and then the whole dynamic in washington changes. you have a dynamic that everybody is running for office. that's how washington will change. >> so on specifics, no way no how would you agree that oil companies who are looking at some record profits and have in the past should let go of their subsidies, u.s. taxpayer money.

you would not agree to that? >> no, i would say if we're looking at subsidies for industries, i already proposed a phasing out of energy subsidies and would continue to propose a phasing out of some of those? >> would you agree to that as part of a debt ceiling package? >> i could put on the table certain tax incentives but not put any rates on the table, and anything with insenttives -- >> would you agree to look at this presidential race coming up, and we had a dismal jobs report -- >> pretty dismal? >> whatever adjective you want to put there. with two wars, issues like abortion and stem cell research, and those classics that republicans tend to run on, those take back seats now when you look at a country in this much trouble? >> i go out across the can untree and talk about jobs and the economy, and that's the highest business, but i talk

about all the business. i think it's important that we talk about national security. if there is anything the president has authority it's in foreign policy and our national security. i think this president has done a poor job, even worst than the economy, he's done on keeping america safe and our country strong around the world. are they the big issues? no, but they are important issues that people want to hear about. >> there is a group that is asking candidates to sign a pro marriage pledge. you only appoint conservative marriage and only remove anti-marria anti-marriage provisions in the tax code. but this was said. if you are looking at being a leader of our great country we would like to have you pledge personal fidelity to your own spouse and a respect for the marital bonds of others.

first, would you sign this pledge? >> the answer is yes. i pledge personal fidelity to my wife when i was married to her, and i pledged that i would not involve myself with anybody else. >> this is a pledge you would sign? >> yes, i did agree to sign it. >> do you find it intrusive? >> look, the answer to that question is when i first read it, i thought, well i can say that because it's true. should politicians be held to that standard? if you look at the amount of disrespect or disregard members of congress have because of some of the things just like that, the infidelity and not keeping your vows to people that you love, it undermines -- >> it does.

but doesn't that go a little over the top? >> when i first read it i was taken back, but i can't argue that i wasn't, and i understand why they are saying that. it does undermined peoples' respect for the insta tuition. if you cannot be faithful to the people you are closest to, how can we count on you to be faithful to those that you represent. i understand why they are saying it. i was not expecting it to be in there, but i felt comfortable signing it. we'll be right back after this and talk a little politics. we all have internal plumbing.

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welcome back. our guest right now, presidential candidate, rick

santorum, former senator from pennsylvania. let's take a look at some of the polling. you have been on iowa more than anybody out there in the race. >> starting to charge me income taxes. >> i bet they are. let me show you the iowa poll that shows mitt romney and michele bachmann at the top and you at the very bottom at 4%. we see a similar result in new hampshire, with mitt romney and michele bachmann at the top and rick santorum. why haven't you caught fire? >> we're just out there meeting people, and meeting with activists, in people's homes, and building relationships. >> you better hurry, because that straw poll is coming up. >> we'll see how we do. i think that will be a test for us. obviously we're sitting at the bottom.

can we perform better than people above us? can we finish fifth or sixth or fourth or something like that and do better and make sure that we're making progress. remember, this is a caucus state. iowa, not everybody that normally shows up for an election shows up for a caucus. you have to devote an evening of your life to go and vote for president. i can tell you that the level of enthusiasm and energy out there in iowa for us is very good and we feel comfortable we're on a path to february. february is a long way away. you're looking at 35,000 people, and we can do that in a very systematic way and that's what we're working on. >> we have seen some numbers, and where are your numbers going to come in? >> very much at the low end. we announced -- >> a couple million. >> yeah, we'll be under that. i did not have my first

fund-raiser until the last week of june. we did not focus on raising money. i did not make up my mind as to whether or not to pull the trigger until the end of may. i did not want to go out and ask people to raise money if i was not committed to do this. we have plenty of money to execute our plan to execute the straw poll coming up in august. we're running a conservative campaign. a very low budget. we have great folks -- >> it has to be frustrating, though, i would think a little bit, because you have been out there, and this is a retail state. we're looking at -- we're talking a million or so in fund-raising, and then mitt romney has $18 million. >> yeah, most people -- i

occasionally get left on the list. >> is there anything in the race right now that you know you could not support as -- >> i can support any of the republican candidates for president over who we have today. >> all of these are fine with you? >> would i prefer one over other, i can tell you one in particular i prefer over the u.s other, and that would be me. >> what if sarah palin gets into the race? >> it takes the pie and divides it more. my sense is, the more the marier. >> do you have an idea of perry or palin, whether they will get in? >> the more the merrier. keep dividing up the pie, and we'll just be fine. >> you almost said perry -- >> yeah, i caught myself. you will notice -- >> yes, you did. >> thank you. up next, the end of a

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visit boostup.org and help kids in your community stay in school. in sxwrus over an hour, the space shuttle "atlantis" is scheduled to dock at the international space station.

joining me now, nasa administrator who himself has travelled into orbit four times. i think we have all enjoyed a nostalgic moment watching the space shuttle come up. there's more to come when we watch it return to earth and land. i want to take you one step forward. everybody says good by to "atlantis," and it goes to the museum, and the next day you walk into your office. what are you going to be working on? >> candy, first of all, let me thank you for allowing me to represent the people of nasa and our contractor team, and let me take an opportunity to thank the incredible shuttle team that carried us for 30 years through the most awesome program that human kind has ever seen. i will walk into my office tomorrow and continue what has been going on for several years now, and that's our effort to develop -- put the final touches on the development of the next

phase of exploeration of the nation, and that will involve a vehicle, and i will go to work as i do each week working with the commercial entities around the country helping to promote their capability to step in and replace the shuttle in delivering cargo to the international space station as early as next year. >> let me let you make an educated guess, and that is when do you think the u.s. will next send an american into space aboard a u.s. craft of some sort? when will that be? >> american leadership will persist in the foreseeable future. i can guarantee you that. with american innovation and the capability, we will demonstrate the capability of taking cargo to orbit early in 2012. we're months away from that. we're hopeful of starting to ask

for proposal from the city in the early part of next year on a commercial crew vehicle, and we're talking three years to five years. between 2014 and 2015, i am hopeful you will see american astronauts climbing up american aircraft to go to the international space station, and not long after that start flying test haupz on a nasa led effort to explore beyond the orbit and go to deep space. >> let me read you two headlines that caught my eyes and have you comment on them. as you mention, it will be several years before a u.s. astronaut is on a u.s. vessel to go to the space center. we will be using russians as a taxi, and u.s. astronauts will be on russian space ships to get

there. here is a headline from the wall street journal. shuttle's last flight leaves russia with space monopoly. and then russians win the space race. >> candy, i don't think i could disagree more with the headlines. i won't quible, but there's no question about our leadership in exploration in space flight. we have been the leader for many years, many decades now, and we will maintain the leadership. again, americans are on american built spacecraft even as we speak. as "atlantis" approaches the international space station, it has a crew of six that includes americans. and in the foreseeable future we will have american astronauts operating on the international space station. the administration before this one had a chance to get us ahead

of today and we faltered. and we are going to be able to put americans on american-built spacecraft, and produced through american innovation, so that in the next five years or so american astronauts are going to venture into the international space station on the american-built spacecraft, and i am confident in that. >> the space station is there and we have been there many times, and we know that u.s. commercial entities will now build the next vehicle that will get us to the next space station, but what is the next big mission? for 50 years, i think u.s. schoolchildren have looked at, oh, and then we will go here and then to orbit and then to the moon and then the space station. where are we going next? >> i would encourage the american public to listen to the president. he said it on any some of occasions, if you go back to the 15th of april, two years ago -- a year ago when the president

was here at the kennedy space center, and he talked about his desire to go and get beyond lower orbit. and he sent a message of congratulations to my nasa team and reemphasized the fact that he wants us to have humans on or near an astroid in 2025, and be in martian orbit, and those are two well-defined destinations we are working hard on. and everybody has to have the same sense of urgency that my nasa team has now. american contractors are anxious to get on with this and we'll do that. we'll retain our leadership and we'll take our astronauts on american-built and designed vehicles that come from american innovation, and the president set the goals. an astroid in 2025, and mars in

2030. >> we're in budget-cutting times, and nasa certainly goes into a bill of a lull, even though you are working on the astroid and the trip into deep space, and why is it that you are not vulnerable to budget cuts? what would we lose if nasa's budgetfurther? >> candy there are three principles on which i have told my entire team and contractors that we'll always function. one is artability, the other is sustainability, the other one is reasonability, or does it makes sense? we have a plan for the future. we have a plan to explore. should congress decide and the president agree that we're going to cut back on our spending, it would extend the amount of time it takes us to realize the goals the president has said. it will extend the amount of time that's necessary for me to close the gap between the last shuttle flight, this flight of "atlantis" and the first time we put americans into orbit on american-built spacecraft.

my team is dedicated. it may take us longer if we get budget cuts, but i'm not anticipating that. i'm working on a 2010 authorization bill that set out a clear path for me. it was supported by unanimous vote, bipartisan support in congress, signed into law by the president, the continuing resolution under which we work right now will fund us. so if we get funding cuts, you know where we are, but we'll make things happen. >> i do. thank you for joining us this morning. good luck on this last mission. thank you very much and thanks for the support of the american public. up next, the latest on the earthquake in japan, and then president obama takes a second look at who should receive letters of condolence. in here, inventory can be taught to learn. ♪ machines have a voice. ♪ medical history follows you. it's the at&t network -- a network of possibilities...

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time for a check of today's top stories. japan was hit by an earthquake this morning off its northern coast prompting tsunami advisories that have since been canceled. it's believed to be an aftershock from march's devastating earthquake that killed thousands. so far, no immediate reports of injuries or damage. the top military officer in the u.s. told an audience in beijing today that china has, quote, arrived as a world power. mike mullins was speaking at a chinese university as part of a four-day trip intended to strengthen relations between the two countries. britain's best-selling newspaper released its final edition this morning amid phone bribery and hacking allegations. in the issue, "news of the world" apologized for its appalling wrongdoing. police are conducting two separate investigations into the action of former staffers "news

of the world" is owned by the news corp. we return to a controversial issue secretary gates and i discussed a few weeks back. build a new app for the sales team in beijing. and convince the c.e.o. his email will find him... wherever he is. i need to see my family while they're still awake. [ male announcer ] with global services from dell, jim can address his company's i.t. needs through custom built applications, cloud solutions and ongoing support in over 100 countries. so his company sees results. and jim sees his family. dell. the power to do more.

host: could switching to geico reon car insurance? or more host: do people use smartphones to do dumb things? man 1: send, that is the weekend. app grapgic: yeah dawg! man 2: allow me to crack...the bubbly! man 1: don't mind if i doozy. man 3: is a gentleman with a brostache invited over to this party? man 1: only if he's ready to rock! ♪ sfx: guitar and trumpet jam vo: geico. 15 minutes could save you 15% or more on car insurance.

more at stamps.com/tv and get a 4-week trial plus $100 in extras including a scale and free postage to use during your trial. go to stamps.com/tv and never go to the post office again. an update on an issue we discussed a fuse weeks ago with outgoing secretary gates, condolence letters from the president and secretary of defense. they routinely go to the families of men and women killed in combat zones, but not for those who commit suicide in combat zones. secretary gates thought he should be the policy revisited. this week president obama said he is reversing policy. he called theis